Entrepreneurs will be able to use the tax holiday scheme - Ministry of Finance

19th May 2014

“We should provide wide opportunities to participate in creating of the own business”, - said the Minister of Finance A. SILUANOV at the parliamentary hearings on fiscal policy for 2015-2018 in the State Duma.

Entrepreneurs using the simplified system of taxation can count on tax holiday. “We should provide wide opportunities to participate in creating of the own business”, - said the Minister of Finance A. SILUANOV at the parliamentary hearings on fiscal policy for 2015-2018 in the State Duma.

Major directions include the right of subjects of the Russian Federation to set tax holiday in the amount of 0% tax rate for the entrepreneurs registered for the first time and who switched to a simplified tax system and operates in the industrial, scientific and social spheres, SILUANOV said.

“We propose that such a rule operated in the tax period from 2015 until 2018. If the right is acquired in 2018, it could be extended until 2020. First of all, the decision should be taken by the RF subjects due to the fact that these benefits are the income of regions and municipalities” – the Minister says.

“The times are hard now: declining industrial production and declining investment, so tax policy should adequately respond to the current economic situation. The main emphasis should be on the tax incentive components of tax policy in order to catalyze economy and business”, - said the Minister of Finance.

In addition, the Ministry of Finance proposes to expand the list of benefits for the territories of advanced development (Far East) and provide lower rates to pay insurance premiums. “This is particularly important in the very early period of the businesses,” - said the official.

The Ministry of Finance is also studying the issue of compensation of the money spent by the regions on the development of business environment with the help of additional revenue obtained from the territories with new enterprises. “This is a “breakthrough norm “for the businesses, enabling them to create new areas of advanced development, - said SILUANOV. – This is a stimulating norm for the regions”.

At the same time he called for a revision of federal tax benefits due to which regions receive less money, especially this is about property tax benefits.